GIC seeks relaxation in regulatory norms as coronavirus hits operations

While insurance firms ignore MTM gains, they are required to recognise MTM losses as expenses

With the Covid-19 outbreak severely impacting operations of general insurers, the General Insurance Council (GI Council) has, through a letter to the Insurance Regulatory and Development Authority of India (Irdai), sought relaxations in certain regulatory requirements, particularly those related to solvency ratio. GIC is the representative body of general insurance firms.

The GI Council has said that given the huge mark-to-market (MTM) losses in equity investments during March, Irdai should allow firms not to account for diminution in value in equity investments while finalising accounts for the financial year.

 While insurance firms ignore MTM gains, they are required to recognise MTM losses